PEPE price has increased since bouncing off the previous long-term descending resistance trend line on January 8. However, the price failed to sustain the rise and almost returned to the long-term resistance trend line.
Price Movement in PEPE
The cryptocurrency’s price has fallen below the descending resistance trend line since May 2023. It reached its lowest level in September. Subsequently, PEPE began an upward movement that is still ongoing. After the fourth unsuccessful escape attempt in November, it successfully declined the following month. PEPE started to fall after peaking on December 9. It returned to the falling resistance trend line and confirmed it as support on January 8, bouncing off it. Investors use the relative strength index (RSI) as a momentum indicator to assess whether a market is overbought or oversold and whether an asset should be accumulated or sold.
If the RSI value is above 50 and the trend is upward, the bulls are still at an advantage, but if the reading is below 50, the opposite is true. The daily RSI is not helping to determine the direction of the trend as the indicator is exactly at 50. Similarly to the daily timeframe, a potential bottom signal is seen in the six-hour timeframe. This could be due to wave counting and price movement.
Analyst Opinion on PEPE
Technical analysts use Elliott Wave theory to determine the direction of the trend by examining recurring long-term price patterns and investor psychology. The most likely count could indicate that PEPE has completed a five-wave upward movement and is now starting to correct. The correction is taking place within a descending parallel channel, which is commonly observed.
Although not confirmed, the correction may have ended on January 8 due to PEPE’s price bouncing off the channel’s support trend line and the 0.618 Fib retracement support level. A breakout from the descending parallel channel could confirm a bullish outlook. If both upward movements are of the same length, an 80% increase in PEPE price to the next resistance of $0.0000022 could be anticipated.
